INTEL CORP (INTC) SEC Filing 10-K Annual report for the fiscal year ending Saturday, December 31, 2016

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Intel Corporation
2200 Mission College Blvd.
Santa Clara, CA 95054-1549
intellogobw2015q1a20.jpg News Release

 
Intel Reports Record Full-Year Revenue of $59.4 Billion;
Reports Record Quarterly Revenue of $16.4 Billion


News Summary:
Revenue growth in 2016 driven by strength across the business including full-year revenue growth in Client Computing, Data Center, and Internet of Things
Record annual cash flow from operations of $21.8 billion
Solid earnings with GAAP net income of $10.3 billion; non-GAAP net income of $13.2 billion

SANTA CLARA, Calif., January 26, 2017 -- Intel Corporation today reported full-year revenue of $59.4 billion, operating income of $12.9 billion, net income of $10.3 billion and EPS of $2.12. Intel reported non-GAAP revenue of $59.5 billion, operating income of $16.5 billion, net income of $13.2 billion, and EPS of $2.72. The company generated approximately $21.8 billion in cash from operations, paid dividends of $4.9 billion and used $2.6 billion to repurchase 81 million shares of stock.

For the fourth quarter, Intel posted revenue of $16.4 billion, operating income of $4.5 billion, net income of $3.6 billion and EPS of 73 cents. Intel reported non-GAAP operating income of $4.9 billion, net income of $3.9 billion, and EPS of 79 cents. The company generated approximately $8.2 billion in cash from operations, paid dividends of $1.2 billion, and used $533 million to repurchase 15 million shares of stock.

“The fourth quarter was a terrific finish to a record-setting and transformative year for Intel. In 2016, we took important steps to accelerate our strategy and refocus our resources while also launching exciting new products, successfully integrating Altera, and investing in growth opportunities,” said Brian Krzanich, Intel CEO. “I’m pleased with our 2016 performance and confident in our future.”

Full-Year 2016 Business Unit Trends*
Client Computing Group revenue of $32.9 billion, up 2 percent from 2015
Data Center Group revenue of $17.2 billion, up 8 percent from 2015
Internet of Things Group revenue of $2.6 billion, up 15 percent from 2015
Non-Volatile Memory Solution Group revenue of $2.6 billion, down 1 percent from 2015
Intel Security Group revenue of $2.2 billion, up 9 percent from 2015
Programmable Solutions Group revenue of $1.7 billion

* The first quarter of 2016 had 14 weeks of business versus the typical 13 weeks, as the company realigned its fiscal year with the calendar year.

Q4 Business Unit Trends
Client Computing Group revenue of $9.1 billion, up 4 percent year-over-year
Data Center Group revenue of $4.7 billion, up 8 percent year-over-year
Internet of Things Group revenue of $726 million, up 16 percent year-over-year
Non-Volatile Memory Solution Group revenue of $816 million, up 25 percent year-over-year
Intel Security Group revenue of $550 million, up 7 percent year-over-year
Programmable Solutions Group revenue $420 million


- more -


The following information was filed by INTEL CORP on Thursday, January 26, 2017 as an 8K 2.02 statement, which is a press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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  • intc_10k_2017-02-17_102_292
    Financial - Earnings
    by $70 million in 2016 compared to 2015, driven by higher gross margin from IOTG revenue primarily due to higher IOTG platform unit sales and
  • intc_10k_2017-02-17_45_244
    Financial - Earnings
    Higher gross margin from platform revenue
  • intc_10k_2017-02-17_74_267
    Financial - Earnings
    Higher gross margin from CCG platform revenue
  • intc_10k_2017-02-17_92_283
    Financial - Earnings
    Higher gross margin from DCG platform revenue
  • intc_10k_2017-02-17_95_286
    Financial - Earnings
    Higher gross margin from DCG platform revenue
  • intc_10k_2017-02-17_64_257
    Revenue & Net Sales - Product
    Higher mobile platform revenue, primarily from reduction of cash consideration to our customers
  • intc_10k_2017-02-17_44_59
    Financial - Earnings
    Our overall gross margin percentage was 60.9% in 2016, down from 62.6% in 2015, and down from 63.7% in 2014.
  • intc_10k_2017-02-17_13_226
    Financial - Earnings
    Gross margin dollars were $36.2 billion, up $1.5 billion
  • intc_10k_2017-02-17_166_146
    Financial - Earnings
    $1.4 billion decrease in cash provided by operating activities was due to changes in working capital, adjustments for non-cash items, and lower net income.
  • intc_10k_2017-02-17_78_271
    Financial - Expense
    Lower factory start-up costs, primarily driven by the ramp of our 14nm process technology
  • intc_10k_2017-02-17_51_250
    Financial - Expense
    Lower factory start-up costs, primarily driven by the ramp of our 14nm process technology
  • intc_10k_2017-02-17_124_115
    Financial - Expense
    The increase was due to higher investment in our products primarily server, Internet of Things, and new devices as well as expenses of newly acquired entities and higher process development costs for our 10nm process technology.
  • intc_10k_2017-02-17_173_153
    Revenue & Net Sales - Product
    This activity was partially offset by net available-for-sale activity which was cash flow neutral in 2015 compared to a source of cash in 2014 and higher investments in non-marketable equity investments during 2015.
  • intc_10k_2017-02-17_41_55
    Revenue & Net Sales - Product
    The higher revenue was also driven by higher unit sales from our DCG platform and higher average selling prices from our notebook and desktop platforms.
  • intc_10k_2017-02-17_138_311
    Financial - Shares / Equity
    As of December 31, 2016, unrecognized share-based compensation costs and the weighted average periods over which the costs are expected to be recognized were as follows:
  • intc_10k_2017-02-17_168_337
    Other - Other
    increase in cash used for investing activities in
  • intc_10k_2017-02-17_87_87
    Revenue & Net Sales - Product
    Our DCG platform revenue increased, primarily due to growth in the cloud service provider and communication service provider market segments.
  • intc_10k_2017-02-17_79_272
    Financial - Expense
    Lower production costs primarily on our 14nm products, treated as period charges in 2014
  • intc_10k_2017-02-17_11_13
    Revenue & Net Sales - Product
    We achieved record revenue of $59.4 billion in 2016, up $4.0 billion, or 7%, from 2015.
  • intc_10k_2017-02-17_77_270
    Financial - Earnings
    Lower gross margin from CCG platform revenue
  • intc_10k_2017-02-17_127_307
    Financial - Expense
    MG&A expenses decreased by $206 million in
  • intc_10k_2017-02-17_195_350
    Financial - Dividend
    We believe we have sufficient financial resources to meet our business requirements in the next 12 months, including capital expenditures for worldwide manufacturing and assembly and test working capital requirements and potential dividends, common stock repurchases, acquisitions, and strategic investments.
  • intc_10k_2017-02-17_144_141
    Financial - Expense
    We recognized an interest and other, net loss in 2015 compared to a net gain in 2014 primarily due to higher interest expense, which resulted from the issuance of senior unsecured notes during 2015.
  • intc_10k_2017-02-17_82_85
    Financial - Expense
    In addition, DCG focuses on lowering the total cost of ownership on other specific workload-optimizations for the enterprise, cloud service providers, and communications service provider market segments.
  • intc_10k_2017-02-17_147_319
    Financial - Income
    Most of the decrease in our effective tax rate in 2015 compared to 2014 was driven by one-time items, a higher proportion of our income from lower tax jurisdictions, and our decision to indefinitely reinvest certain prior years non-U.S. earnings, which positively impacted our effective income tax rate.
  • intc_10k_2017-02-17_65_258
    Revenue & Net Sales - Product
    Lower desktop platform unit sales, down 6%
  • intc_10k_2017-02-17_66_259
    Revenue & Net Sales - Product
    Lower desktop platform unit sales, down 16%
  • intc_10k_2017-02-17_67_260
    Revenue & Net Sales - Product
    Lower notebook platform unit sales, down 9%
  • intc_10k_2017-02-17_61_254
    Revenue & Net Sales - Product
    Higher CCG non-platform revenue
  • intc_10k_2017-02-17_88_279
    Revenue & Net Sales - Product
    Higher DCG platform unit sales
  • intc_10k_2017-02-17_89_280
    Revenue & Net Sales - Product
    Higher DCG platform unit sales
  • intc_10k_2017-02-17_19_26
    Mergers & Acquisitions - Other
    This decrease was primarily driven by higher restructuring and other charges, higher spending, and higher amortization of acquisition-related intangibles.
  • intc_10k_2017-02-17_160_332
    Other - Other
    Effect of exchange rate fluctuations on cash and cash equivalents
  • intc_10k_2017-02-17_58_77
    Financial - Expense
    We also focus on lowering the total cost of ownership for businesses.
  • intc_10k_2017-02-17_125_306
    Financial - Expense
    MG&A expenses increased by $467 million, or 6%, in
  • intc_10k_2017-02-17_122_112
    Financial - Expense
    The increase was driven by the addition of PSG expenses from the acquisition of Altera, higher investment, net of 2016 restructuring program savings, in strategically important areas such as servers, Internet of Things, new devices, and memory, as well as higher process development costs for our new 7nm process technology.
  • intc_10k_2017-02-17_126_118
    Financial - Expense
    This increase was primarily due to PSG expenses from the acquisition of Altera.
  • intc_10k_2017-02-17_132_126
    Other - Other
    We estimate that the charges incurred to date as part of the 2016 restructuring program will result in net annual headcount savings of approximately $1.6 billion as we re-balance our workforce.
  • intc_10k_2017-02-17_22_35
    Other - Other
    To accelerate our transformation, in Q2 2016, we announced the 2016 Restructuring Program, which is on track to reduce our headcount and generate savings.
  • intc_10k_2017-02-17_7_12
    Other - Other
    Overview of contractual obligations, contingent liabilities, commitments, and off-balance-sheet arrangements outstanding as of December 31, 2016, including expected payment schedule.
  • intc_10k_2017-02-17_68_261
    Other - Other
    Higher desktop platform average selling prices, up 6%
  • intc_10k_2017-02-17_69_262
    Other - Other
    Higher notebook platform average selling prices, up 2%
  • intc_10k_2017-02-17_62_255
    Other - Other
    Higher notebook platform average selling prices, up 2%
  • intc_10k_2017-02-17_63_256
    Other - Other
    Higher desktop platform average selling prices, up 2%
  • intc_10k_2017-02-17_17_24
    Revenue & Net Sales - Product
    R&D and MG&A were 35.6% of revenue in 2016, down approximately 1 point from 2015.
  • intc_10k_2017-02-17_141_314
    Financial - Shares / Equity
    We recognized higher net gains on equity investments in 2016 compared to 2015 primarily due to gains of $407 million related to sales of a portion of our interest in ASML.
  • intc_10k_2017-02-17_130_123
    Other - Other
    Under this program, we are in the process of closing certain facilities and reducing headcount globally to align our operations with evolving business needs by investing in our growth businesses and improving efficiencies.
  • intc_10k_2017-02-17_54_68
    Other - Other
    In combination, these enhancements can provide significant power savings and performance gains when compared to previous-generation processors.
  • intc_10k_2017-02-17_181_161
    Other - Other
    We base our level of common stock repurchases on internal cash management decisions, and this level may fluctuate.
  • intc_10k_2017-02-17_167_148
    Financial - Cash Flow
    Investing cash flows consist primarily of capital expenditures investment purchases, sales, maturities, and disposals and proceeds from divestitures and cash used for acquisitions.
  • intc_10k_2017-02-17_182_167
    Financial - Dividend
    The dividend is payable on March 1, 2017 to stockholders of record on February 7, 2017.
  • intc_10k_2017-02-17_19_25
    Financial - Earnings
    Earnings per share of $2.12 were down 21 cents, or 9% from a year ago.
  • intc_10k_2017-02-17_101_291
    Financial - Income
    The operating income for the IOTG operating segment increased
  • intc_10k_2017-02-17_165_336
    Other - Other
    lower due to bonus depreciation on capital assets placed in service, as well as timing of certain tax payments and refunds.
  • intc_10k_2017-02-17_73_266
    Financial - Expense
    Lower CCG platform unit cost
  • intc_10k_2017-02-17_213_216
    Other - Other
    The obligation to pay the relevant taxing authority is excluded from the preceding table, as the amount is contingent upon continued employment.
  • intc_10k_2017-02-17_177_154
    Financial - Debt
    2015, primarily due to lower proceeds from debt issuances and the repayment of $1.5 billion of debt in 2016.

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  • Form Type: Annual
  • Number of times amended: 0
  • Accession Number: 0000050863-17-000012
  • Submitted to the SEC: Friday, February 17, 2017
  • Accepted by the SEC: Friday, February 17, 2017
  • Period Ending: December 2016
Companies
 

INTC Morningstar

INTEL CORP

$37.10 +0.17 (+0.46%)

Day's Range:
$36.78 to $37.18

52-Week Range:
$29.50 to $38.45

Volume:
12,893,723

Volume (Avg):
23,649,300

Earnings per Share:
$2.12

PEG / Short / PE Ratios:
1.61 / 3.73 / 17.50

Market Cap:
$175.41B

Book Value:
14.00

EBITDA:
$22.87B